From the Brewers Association:
By Katie Marisic Senior Director of Federal Affairs
President-elect Donald Trump shared on Truth Social that unless the the flow of migrants and drugs like fentanyl into the United States is stemmed, he plans to impose 25% tariffs on all imports from Mexico and Canada and an additional 10% tariff on goods from China immediately after he is sworn in on January 20. Tariffs were a major talking point of Trump’s campaign, and during his prior presidential term they were often used as a negotiation tactic. There is a chance these tariffs won’t be imposed, but prudence dictates taking them seriously and identifying how small and independent breweries could be impacted if they go into effect.
More than 9,900 small and independent breweries across the U.S. create almost 190,000 jobs, including serving staff at brewpubs. Craft beer manufactured by Brewers Association (BA) members is made in America, and it can’t be made anywhere else, but that doesn’t insulate the industry from tariffs. If these proposed tariffs go into effect, here are some of the ways they could directly impact small and independent breweries:
- Malted barley isn’t an easy a crop to grow. It requires temperate climates with cool, dry weather. States like Montana and Idaho are excellent barley producers, as is Canada. Suppliers have farms on both sides of the border. Small producers tend not to have contracts for their malted barley. This provides flexibility to order what they need when demand arises. This has worked well for the industry and suppliers but means that a significant amount of barley used by small breweries likely comes from Canada.
- Aluminum has been under a 232 tariff since 2018, but aluminum from Canada was exempt from that tariff. Most aluminum used to manufacture cans is imported from Canada. Even with the exemption, the cost of aluminum cans has risenOpens in new window since the initial tariffs went into place. A 25% tariff on Canadian aluminum would likely further increase the cost of cans for small producers.
- Other materials used in the brewing process, like bottle caps imported from Mexico and equipment or parts imported from other countries, could also be impacted if the tariffs go into effect.
The Brewers Association asks you to connect directly with usOpens in new window and share ways your brewery would be affected if these tariffs go into effect.
If our trading partners implement retaliatory tariffs, it could impact exporting breweries, including those participating in the BA Export Development Program, and our supply chain partners like hops and barley growers who export their products worldwide.
There is no guarantee that these tariffs will be implemented, but we want to keep members alerted to what is happening in Washington, D.C., and how it can impact your brewery. The BA will educate Congress and the new administration about the benefits that small brewers bring to their communities and how tariffs like these could affect the industry. If you have questions or would like to share information, please reach out to Brewers Association staffOpens in new window.
Link to author biographyWritten By
Katie Marisic , Senior Director of Federal Affairs
Katie Marisic is the senior director of federal affairs at the Brewers Association. Based in Washington, D.C. she plans and executes legislative, regulatory, and political strategies to drive the association's federal affairs presence on Capitol Hill. Prior to working for the BA, Katie was vice president of political affairs at the National Association of Federal Credit Unions. She got her start in politics working on congressional campaigns during the 2006 and 2008 elections. A Pennsylvania native, Katie is a long time craft brewing supporter. In 2013 she helped to open Atlas Brew Works in Washington, D.C. When she is not advocating for the craft brewing community on Capitol Hill you can sometimes find her pouring beers at a local tasting room.
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